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Avalon
Correctional Services, Inc. Announces First Quarter Earnings for 2003
- 16th Consecutive Quarter of
Profitability
- First Quarter EPS of $.06 basic and $.05 diluted
- General and Administrative Expenses Reduced by 30%
OKLAHOMA CITY, Oklahoma -- May 5, 2003 --
Avalon Correctional Services, Inc. (NASDAQ: CITY)
today announced financial results for the three months ended March 31, 2003.
The Company earned net income for the three
months ended March 31, 2003 of $295,000 or $.06 basic and $.05 diluted
earnings per share, as compared to net income for the three months ended March
31, 2002 of $361,000 or $.07 basic and diluted earnings per share.
Total revenues for the first quarter
decreased by 7% to $6.17 million from $6.62 million for the quarter ended
March 31, 2002. The decrease in revenues was a result of the Union City
Juvenile contract expiring in December 2002. The Union City Juvenile contract
was partially offset by increased revenues from the Company's Oklahoma and
Texas facilities.
General and administrative expense was
reduced by 30% to 5.8% of revenues for the three months ended March 31, 2003
compared to 7.73% for the same period last year. The decrease was a result of
cost reduction measures implemented in the fourth quarter of 2002 and first
quarter of 2003.
Cash generated by operations increased
$160,000 in the first quarter of 2003 compared to the same period last year.
Donald E. Smith, Chief Executive Officer and
Chairman of Avalon stated, "We are pleased with the Company's first
quarter results, they have exceeded our expectations. Despite the loss of the
Union City contract we were able to remain profitable and our cost reduction
plan is starting to be realized. The increased budgetary pressures by Federal
and state governments on contract agencies, highlights the value of reduced
recidivism rates and lower costs of community corrections. Thus the existing
corrections environment should boost current and future opportunities for
Avalon to increase services, revenues, and ultimately shareholder
return."
Consolidated Statements of Operations (unaudited)
| |
Three
Months Ended |
| |
March 31, |
| |
2003 |
2002 |
| |
____________________ |
| Revenues |
$6,170,000 |
$6,625,000 |
| |
____________________ |
| Costs & Expenses |
|
|
| Direct
Operating |
$4,379,000 |
$4,468,000 |
| General
& administrative |
358,000 |
512,000 |
| Depreciation & amortization |
357,000 |
495,000 |
| Interest Expense |
589,000 |
654,000 |
| |
____________________ |
| Income from continuing operations |
|
|
| before
income tax expense |
$487,000 |
$496,000 |
| Income
tax expense |
$192,000 |
$135,000 |
| |
____________________ |
| Net income |
$295,000 |
$361,000 |
| |
____________________ |
| Basic income per share: |
|
|
| Net income per share, basic |
$0.06 |
$0.07 |
| |
____________________ |
| Diluted income per share: |
|
|
| Net income per share: |
$0.05 |
$0.07 |
| |
____________________ |
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